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Registration number: 10653521

Teamson UK Ltd

Annual Report and Financial Statements

for the Year Ended 31 December 2022

 

Teamson UK Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14 to 25

 

Teamson UK Ltd

Company Information

Directors

W Su

A Tsai Su

G Woods

Registered office

Unit G
Stafford Park 12
Telford
Shropshire
TF3 3BJ

Auditors

CBSL Accountants Limited
Chartered Accountants and Statutory Auditor
Rowan House North
1 The Professional Quarter
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 

Teamson UK Ltd

Strategic Report for the Year Ended 31 December 2022

The directors present their strategic report for the year ended 31 December 2022.

Principal activity

The principal activity of the company is retail of furniture and furnishings.

Fair review of the business

The directors aim to present a comprehensive review of the business during the year and its position at the year end.

The company continues to be affected by significant challenges including but not limited to; - downward trend in consumer spending; - escalating import costs and weakened currency; - price inflation; - increased labour charges.

These challenges as well as the cost of living crisis and the Ukraine conflict have impacted the business in 2022 and into 2023.

During 2023 there has been an enhanced focus and strategy as the company has continued to extend its reach into the full EMEA region, where the company has enjoyed good growth in the Netherlands, Poland and other Eastern European countries.

In recent months we launched partnerships with over 40 new sales channels, mostly tier 1 business partners who are established and well-respected online retailers in their regions and categories.

These new partnerships will significantly reduce our reliance on the UK market and also on specific retailers. For 2024 we fully expect to realise the benefits of this strategy by way of increased revenue and improved margin.

Key Performance Indicators

Sales have fallen during 2022 from £7.31m to £5.64m with the cost of living crisis affecting consumer spending patterns.

Overall net assets total £410k (2021 - £2.61m) following a net loss generated for the year. The trading subsidiaries remain strong and the group continues to remain supportive.

 

Teamson UK Ltd

Strategic Report for the Year Ended 31 December 2022

Principal risks and uncertainties

The prinicipal commercial risks to the business remain the challenges faced as we continue to work through the cost of living crisis. The prevailing economic climate will continue to affect the demand and requirement for our products, to manage this risk we continue to expand into the EMEA regions and launch new channels to reduce our reliance on a specific country or sales channel.

To manage the risk of currency fluctuation we work with market leaders in currency exchange and constantly monitor the position, forecast and forward purchase where beneficial.

Trade debtors are monitored to ensure that credit control procedures are being implemented and we regularly track the performance of all channels to ensure levels of bad debt continue to decrease.

Import costs, increased fuel prices and the constant fluctuation in the operational costs are reviewed regularly and calculated into the sales price to ensure we remain as profitable whilst also as competitive as possible.

Approved and authorised by the Board on 21 February 2024 and signed on its behalf by:
 


G Woods
Director

 

Teamson UK Ltd

Directors' Report for the Year Ended 31 December 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors of the company

The directors who held office during the year were as follows:

W Su

A Tsai Su

G Woods

Financial instruments

Objectives and policies

The group's principal financial instruments comprise bank balances, bank loans, hire purchase contracts and group borrowings,

Bank balances are held in a way that achieves a competitive rate of interest. Bank borrowings are in respect of an invoice discounting facility. Group borrowings enable the company to purchase in advance for seasonal ranges to ensure stock levels are high to meet customer demands.

Future developments

We continue to invest into SKU content and product assets, including enhanced translation of content, thus ensuring as we enter these new markets that we maximise the opportunity and present ourselves in the most professional manner to deliver the anticipated growth and success.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 21 February 2024 and signed on its behalf by:
 


G Woods
Director

 

Teamson UK Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Teamson UK Ltd

Independent Auditor's Report to the Members of Teamson UK Ltd

Opinion

We have audited the financial statements of Teamson UK Ltd (the 'company') for the year ended 31 December 2022, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to note 2 in the financial statements, which indicates that the company incurred a net loss of £2,198,464 during the year ended 31 December 2022 and as at that date, it had net assets of £409,782. As stated in note 2, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting including obtaining direct confirmation from group and connected parties that no repayment of liabilities will be sought until the company is in a position to do so.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

 

Teamson UK Ltd

Independent Auditor's Report to the Members of Teamson UK Ltd

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

Teamson UK Ltd

Independent Auditor's Report to the Members of Teamson UK Ltd

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to this company and its sector and determined that the most significant are those relating to the reporting framework and the relevant UK tax legislation.

We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures.

As an audit engagement team, we assessed the susceptibility of the company’s financial statements to material misstatement including how fraud might occur and considered the opportunities and incentives that may exist within the company for fraud. We considered the controls that the company has established to address the risks identified to prevent, deter and detect fraud; and how the management and directors monitor those controls.

Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Those procedures involved: - enquiries of management and those charged with governance; - journal entry testing; - assessing whether judgements in making accounting estimates are indicative of a potential bias; and – evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included revenue recognition and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Teamson UK Ltd

Independent Auditor's Report to the Members of Teamson UK Ltd

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.





Louise Osselton FCA (Senior Statutory Auditor)
For and on behalf of CBSL Accountants Limited, Statutory Auditor

Rowan House North
1 The Professional Quarter
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

21 February 2024

 

Teamson UK Ltd

Profit and Loss Account for the Year Ended 31 December 2022

Note

2022
£

2021
£

Turnover

3

5,637,929

7,309,872

Cost of sales

 

(6,450,328)

(6,606,661)

Gross (loss)/profit

 

(812,399)

703,211

Administrative expenses

 

(1,424,383)

(1,591,885)

Other operating income

4

50,610

5,401

Operating loss

6

(2,186,172)

(883,273)

Income from shares in group undertakings

 

-

(31,997)

Other interest receivable and similar income

7

73

25

Interest payable and similar expenses

8

(12,365)

(699)

   

(12,292)

(32,671)

Loss before tax

 

(2,198,464)

(915,944)

Loss for the financial year

 

(2,198,464)

(915,944)

The above results were derived from continuing operations.

 

Teamson UK Ltd

Statement of Comprehensive Income for the Year Ended 31 December 2022

2022
£

2021
£

Loss for the year

(2,198,464)

(915,944)

Foreign currency translation gains

-

52,189

Total comprehensive income for the year

(2,198,464)

(863,755)

 

Teamson UK Ltd

(Registration number: 10653521)
Balance Sheet as at 31 December 2022

Note

2022
£

2021
£

Fixed assets

 

Tangible assets

13

92,091

132,129

Investments

14

3,015,863

3,015,863

 

3,107,954

3,147,992

Current assets

 

Stocks

15

4,395,145

4,848,595

Debtors

16

905,217

995,844

Cash at bank and in hand

 

725,255

462,453

 

6,025,617

6,306,892

Creditors: Amounts falling due within one year

18

(7,428,472)

(5,698,792)

Net current (liabilities)/assets

 

(1,402,855)

608,100

Total assets less current liabilities

 

1,705,099

3,756,092

Creditors: Amounts falling due after more than one year

18

(1,295,317)

(1,147,846)

Net assets

 

409,782

2,608,246

Capital and reserves

 

Called up share capital

3,745,988

3,745,988

Retained earnings

(3,336,206)

(1,137,742)

Shareholders' funds

 

409,782

2,608,246

Approved and authorised by the Board on 21 February 2024 and signed on its behalf by:
 


G Woods
Director

 

Teamson UK Ltd

Statement of Changes in Equity for the Year Ended 31 December 2022

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

3,745,988

(1,137,742)

2,608,246

Loss for the year

-

(2,198,464)

(2,198,464)

At 31 December 2022

3,745,988

(3,336,206)

409,782

Share capital
£

Foreign currency translation
£

Retained earnings
£

Total
£

At 1 January 2021

1,508,396

(52,189)

(221,798)

1,234,409

Loss for the year

-

-

(915,944)

(915,944)

Other comprehensive income

-

52,189

-

52,189

Total comprehensive income

-

52,189

(915,944)

(863,755)

New share capital subscribed

2,237,592

-

-

2,237,592

At 31 December 2021

3,745,988

-

(1,137,742)

2,608,246

 

Teamson UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit G
Stafford Park 12
Telford
Shropshire
TF3 3BJ

These financial statements were authorised for issue by the Board on 21 February 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

As at 31 December 2022 the company had net assets of £410k. Included within the current liabilities balance of £7,428,472 is £6,427,322 that is due to fellow group and connected companies, which will not request repayment of these balances unless the company has sufficient resources in which to do so.

After reviewing the company and group forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue its operational existence for the foreseeable future, via support from its parent and connected company.

Management have reviewed the business plan for the year ended 31 December 2024 and to 31 March 2025, which includes the results of implementing a number of strategic plans in 2023 to reduce costs and improve stock control and which they believe will return the business to a profitable position in the future.

Summary of disclosure exemptions

As a subsidiary undertaking which meets the definition of a qualifying entity, it is claiming the exemption from preparing a cash flow statement in FRS 102, paragraph 1.12(b).

 

Teamson UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

Name of parent of group

These financial statements are consolidated in the financial statements of Teamson Group.

The financial statements of Teamson Group may be obtained from 3F, No 36, Nanjing W. Rd., Datong District, Taipei City, Taiwan 10352.

Exemption from preparing group accounts

The financial statements contain information about Teamson UK Ltd as an individual company and do not contain consolidated financial information as the parent of a group.
The company is exempt under section 401 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Teamson Group, a company incorporated in Cayman Islands.

Key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates is revised.

The key estimates used in the financial statements relate to the useful economic lives of the tangible fixed assets and the stock provision.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Teamson UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Motor vehicles

25% straight line

Fixtures and fittings

33% straight line

Computer equipment

25% straight line

Other fixed assets

25% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Teamson UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Teamson UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2022
 £

2021
 £

Sale of goods

5,637,929

7,309,872

The analysis of the company's turnover for the year by market is as follows:

2022
 £

2021
 £

UK

4,202,717

5,122,228

Rest of world

1,435,212

2,187,644

5,637,929

7,309,872

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2022
 £

2021
 £

Miscellaneous other operating income

50,610

5,401

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2022
 £

2021
 £

Gain/loss on disposal of property, plant and equipment

20,803

-

 

Teamson UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

6

Operating loss

Arrived at after charging/(crediting)

2022
 £

2021
 £

Depreciation expense

60,574

72,993

Foreign exchange losses

822,251

63,307

Profit on disposal of property, plant and equipment

(20,803)

-

7

Other interest receivable and similar income

2022
 £

2021
 £

Interest income on bank deposits

73

25

8

Interest payable and similar expenses

2022
 £

2021
 £

Interest on bank overdrafts and borrowings

9,280

699

Interest on obligations under finance leases and hire purchase contracts

3,085

-

12,365

699

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2022
 £

2021
 £

Wages and salaries

711,924

733,138

Social security costs

71,568

71,042

Pension costs, defined contribution scheme

7,169

9,075

790,661

813,255

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2022
No.

2021
No.

Administration and support

5

6

Sales, marketing and distribution

16

17

21

23

 

Teamson UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2022
 £

2021
 £

Remuneration

110,950

131,250

Contributions paid to money purchase schemes

-

547

110,950

131,797

During the year the number of directors who were receiving benefits and share incentives was as follows:

2022
 No.

2021
 No.

Received or were entitled to receive shares under long term incentive schemes

-

1

11

Auditors' remuneration

2022
 £

2021
 £

Audit of the financial statements

12,770

7,750

Other fees to auditors

Taxation compliance services

-

750

All other assurance services

1,271

2,100

1,271

2,850


 

 

Teamson UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

12

Taxation

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of 19% (2021 - 19%).

The differences are reconciled below:

2022
£

2021
£

Loss before tax

(2,198,464)

(915,944)

Corporation tax at standard rate

(417,708)

(174,029)

Effect of expense not deductible in determining taxable profit (tax loss)

831

503

Tax increase from effect of capital allowances and depreciation

5,292

5,093

Tax increase from effect of unrelieved tax losses carried forward

411,585

168,433

Total tax charge/(credit)

-

-

As at 31 December 2022 the company has trading tax losses carried forward of £3,338,589.

13

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 January 2022

142,844

54,460

65,512

262,816

Additions

6,437

42,891

12,037

61,365

Disposals

-

(54,460)

-

(54,460)

At 31 December 2022

149,281

42,891

77,549

269,721

Depreciation

At 1 January 2022

78,772

13,631

38,284

130,687

Charge for the year

36,386

8,578

15,610

60,574

Eliminated on disposal

-

(13,631)

-

(13,631)

At 31 December 2022

115,158

8,578

53,894

177,630

Carrying amount

At 31 December 2022

34,123

34,313

23,655

92,091

At 31 December 2021

64,072

40,829

27,228

132,129

 

Teamson UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2022
£

2021
£

Motor vehicles

34,313

40,829

     

14

Investments

2022
 £

2021
 £

Investments in subsidiaries

3,015,863

3,015,863

Subsidiaries

£

Cost or valuation

At 1 January 2022

3,015,863

At 31 December 2022

3,015,863

Carrying amount

At 31 December 2022

3,015,863

At 31 December 2021

3,015,863

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2022

2021

Subsidiary undertakings

Teamson AU PTY Ltd

L10 530 Collins Street, Melbourne VIC 30000

Australia

Ordinary

100%

100%

Teamson Europe BV

Zekeringstraat 17 A, Amsterdam 1014BM

Netherlands

Ordinary

100%

100%

Teamson US Inc.

1280 Lakes Pkwy, STE 200, Lawrenceville GA 30043-5869

USA

Ordinary

100%

100%

 

Teamson UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

15

Stocks

2022
 £

2021
 £

Finished goods and goods for resale

4,395,145

4,848,595

16

Debtors

Current

Note

2022
£

2021
£

Trade debtors

 

726,315

883,143

Amounts owed by related parties

23

54

13,820

Other debtors

 

105,049

17,945

Prepayments

 

73,799

80,936

   

905,217

995,844

17

Cash and cash equivalents

2022
 £

2021
 £

Cash at bank

725,155

462,453

Cash on hand

100

-

725,255

462,453

18

Creditors

Note

2022
 £

2021
 £

Due within one year

 

Loans and borrowings

21

519,577

50,197

Trade creditors

 

284,605

754,958

Amounts due to related parties

23

6,427,322

4,590,223

Social security and other taxes

 

31,553

94,434

Outstanding defined contribution pension costs

 

2,233

1,549

Other payables

 

6,215

47,551

Accrued expenses

 

156,967

159,880

 

7,428,472

5,698,792

Due after one year

 

Loans and borrowings

21

49,366

34,839

Other non-current financial liabilities

 

1,245,951

1,113,007

 

1,295,317

1,147,846

 

Teamson UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £7,169 (2021 - £9,075).

Contributions totalling £2,233 (2021 - £1,549) were payable to the scheme at the end of the year and are included in creditors.

20

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary of £1 each

100

100

100

100

         

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary of $1 each

5,000,000

3,745,900

5,000,000

3,745,900

         

21

Loans and borrowings

Obligations under HP and finance lease liabilities are secured against the assets to which they relate.

Bank borrowings are secured by a fixed and floating charge over the tangible assets of the company.

2022
 £

2021
 £

Non-current loans and borrowings

Bank borrowings

25,195

34,839

HP and finance lease liabilities

24,171

-

49,366

34,839

2022
 £

2021
 £

Current loans and borrowings

Bank borrowings

511,952

9,648

HP and finance lease liabilities

7,625

40,549

519,577

50,197

 

Teamson UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2022

22

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2022
£

2021
£

Not later than one year

15,360

39,095

Later than one year and not later than five years

-

26,040

15,360

65,135

23

Related party transactions

At 31 December 2022 the company had a balance due from one of its directors of £4,867 (2022 - £5,109), which is included in Other debtors.

Summary of transactions with other related parties

A company under common control
 At the year end there was a balance of £3,608,708 due to a company under common control, which is included in creditors.
 

24

Parent and ultimate parent undertaking

The company's immediate parent is Teamson Group, incorporated in Cayman Islands.

  These financial statements are available upon request from 3F No 36, Nanjing W. Rd, Datong Dist, Taipei City, Taiwan 10352